SAN FRANCISCO — Shares of Atlassian Corporation jumped more than 30 percent in trading Friday after the collaboration software company reported stronger-than-expected fiscal fourth-quarter results and issued first-quarter revenue guidance that exceeded Wall Street estimates.

The stock rose as much as 30 percent or more in morning trading, with shares trading near $143 to $148 at various points, up sharply from the previous close of about $110. The move marked one of the largest single-day gains for the company in recent months and pushed the shares toward levels last seen earlier in the year.

Atlassian, known for tools such as Jira, Confluence and other team productivity software, said revenue for the quarter ended June 30 rose 28 percent year over year to $1.77 billion. That figure topped analysts’ average estimate of roughly $1.66 billion. Cloud revenue climbed 31 percent to $1.21 billion, continuing a trend of accelerating growth in the company’s subscription-based offerings.

Subscription annual recurring revenue reached $6.61 billion, up 23 percent from a year earlier. Remaining performance obligations, a measure of contracted future revenue, increased 44 percent to $4.82 billion, providing visibility into future business.

On a GAAP basis, Atlassian reported net income of $139 million, or 55 cents per share, compared with a net loss of $24 million, or 9 cents per share, in the year-earlier period. The company posted a GAAP operating margin of 12 percent. Adjusted earnings came in at $1.87 per share, beating the consensus forecast of $1.50.

“Simply put, we had an outstanding quarter to cap an outstanding year,” Chief Executive Officer and co-founder Mike Cannon-Brookes said in the company’s earnings materials. He noted that total revenue grew 28 percent year over year and that cloud growth accelerated, with certain AI-related tools surpassing one million monthly active users after more than doubling in a single quarter.

For the first quarter of fiscal 2027, Atlassian projected revenue between $1.705 billion and $1.715 billion, above the analyst consensus of about $1.66 billion to $1.67 billion. The company also pointed to continued cloud revenue growth in the high-20 percent range. Full-year fiscal 2027 guidance reflected more measured expectations amid broader macroeconomic uncertainty, though the near-term outlook and metrics on enterprise deals helped ease some investor concerns.

Cannon-Brookes also indicated plans to purchase up to $250 million of Atlassian shares, a move that signaled confidence in the company’s trajectory. He already holds a substantial stake in the firm.

The results and guidance prompted positive reactions from analysts. Bank of America upgraded the stock to Buy from Neutral and raised its price target to $175 from $105, describing Atlassian as an “AI beneficiary rather than an AI victim.” The firm highlighted the company’s workflow and collaboration data as a differentiated asset. Other firms also lifted targets, citing the strong finish to the fiscal year and evidence of AI-related product traction.

Atlassian has faced questions in recent periods about the potential impact of artificial intelligence on software demand and competitive dynamics in the collaboration space. The latest numbers showed accelerating cloud growth, record enterprise deals and rising adoption of AI-enabled features, which investors interpreted as evidence that the company is successfully integrating the technology into its platform rather than being disrupted by it.

The broader software sector has experienced volatility, with some SaaS companies seeing valuation pressure amid shifting growth expectations. Atlassian’s ability to post sequential improvement in cloud metrics and return to GAAP profitability stood out against that backdrop. Trading volume on Friday was elevated, reflecting heavy investor interest following the after-hours release of results on Thursday.

Atlassian’s products are used by teams for project tracking, knowledge management, service delivery and software development. The company has emphasized its shift toward cloud deployments and the expansion of its customer base among larger enterprises. Metrics such as remaining performance obligations and annual recurring revenue serve as key indicators of that transition’s progress.

Looking ahead, investors will watch for sustained cloud growth rates, further details on AI monetization and the company’s ability to convert strong remaining performance obligations into realized revenue. The first-quarter guidance provides an early test of momentum into the new fiscal year.

The stock’s sharp advance reflected relief that growth concerns had been addressed by the reported numbers and that management’s outlook aligned with or exceeded expectations on key near-term metrics. While full-year guidance was more cautious, the combination of beat-and-raise elements on the quarter, profitability improvement and insider buying supported the strong market reaction.

Atlassian closed its fiscal 2026 with clear evidence of demand for its core offerings and early signs that AI features are contributing to user engagement. The market’s response on Friday underscored how closely investors are monitoring the interplay between traditional software growth and the emerging role of artificial intelligence in enterprise tools.

This article was written by

Follow

This article was written by

Follow

This article was written by

Follow

Copyright ©2026 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Yelp shares climbed Friday, trading up 7.79% to $26.99, extending gains following the local business review platform’s second-quarter earnings report, which beat Wall Street expectations on both revenue and profit while highlighting rapid growth in the company’s newer AI-powered products.

The results, released Thursday after markets closed, showed Yelp continuing to navigate a challenging advertising environment for its core local business listings while leaning increasingly on artificial intelligence-driven services to offset slower growth in its traditional revenue streams.

A Solid Beat Across the Board

Yelp reported second-quarter revenue of $375.5 million, up 1.4% from the same period a year earlier and comfortably ahead of the roughly $366.7 million analysts had been expecting heading into the report. On a per-share basis, the company posted GAAP earnings of 57 cents, beating the consensus estimate by 56.7%, while adjusted earnings came in at 62 cents per share, topping the 40-cent forecast by 22 cents.

The revenue beat came even as growth decelerated from the 3.7% year-over-year increase Yelp posted in the same quarter a year earlier, reflecting continued softness in the company’s core advertising business even as overall results exceeded the relatively modest expectations analysts had set heading into the report.

AI-Powered Services Provide a Bright Spot

The standout theme in Yelp’s results centered on the rapid growth of its newer artificial intelligence-driven revenue streams, a category the company groups under “other revenue” that includes its Yelp Host product, its Hatch platform, and data licensing arrangements. In the first quarter of 2026, that segment surged 75% year over year to a record $29 million, and the company has continued to point to it as central to its longer-term growth strategy, with management targeting a $250 million annual run rate for the category by the end of 2028.

Yelp Host, the company’s AI-powered call-handling product for local businesses, has shown particularly strong momentum. The service surpassed an annual run rate of 1.5 million calls handled by April, more than doubling its volume since January. Yelp’s chief executive has estimated the total addressable market opportunity for the product at more than $1 billion within the United States alone, underscoring why the company has continued prioritizing investment in the offering even as growth in its legacy advertising business has slowed.

Continued Pressure on Core Advertising

Despite the strength in its newer AI-driven offerings, Yelp’s traditional local advertising business has continued to show signs of strain. In the company’s first-quarter results, paying advertising locations fell 6% year over year to approximately 485,000, while ad clicks declined 10% even as the average cost per click rose 8%. Within that business, services advertising revenue grew a modest 1% to $234 million, while advertising revenue tied to restaurants, retail and other categories fell 11% to $99 million, reflecting uneven demand trends across different segments of Yelp’s local business customer base.

Management has attributed some of that softness to broader macroeconomic uncertainty affecting advertiser budgets, including a period of particular weakness in March that the company linked to geopolitical events weighing on business confidence more broadly.

Guidance Holds Steady

Following the second-quarter results, Yelp maintained its full-year 2026 revenue guidance at approximately $1.47 billion, a figure that closely aligns with analyst expectations and reflects the company’s continued confidence in its overall growth trajectory despite ongoing pressure in its core advertising segment. For the third quarter specifically, Yelp had previously guided investors to expect revenue in a range of $363 million to $368 million, alongside adjusted EBITDA of $70 million to $75 million, with full-year adjusted EBITDA guidance set at a range of $310 million to $330 million.

Capital Returns Continue

Alongside its operational results, Yelp has continued an active share buyback program, repurchasing $125 million worth of its own stock in the first quarter of 2026 alone, contributing to a roughly 12% year-over-year decline in diluted shares outstanding. The company reported $414 million remaining under its current share repurchase authorization as of that filing, giving it continued flexibility to return capital to shareholders even as it invests in its AI product roadmap.

Insider Selling Continues

Not every signal surrounding the stock has been unambiguously positive. According to recent filings, Yelp insiders have sold shares on the open market 19 times over the past six months, with zero purchases recorded during that same window, a pattern some analysts have flagged as worth monitoring even though insider selling can reflect a range of personal financial decisions unrelated to a company’s underlying business outlook. Institutional investor positioning has also been mixed, with 141 institutional holders adding to their Yelp positions in the most recent quarter while 175 reduced their stakes over the same period.

A Stock That Has Traded in a Wide Range

Yelp shares have traded within a 52-week range of $19.60 to $34.64, reflecting a meaningful degree of volatility over the past year even as the company’s underlying revenue growth has remained relatively stable. Ahead of Thursday’s earnings release, Yelp shares had traded modestly higher, up about 1.1% in the days leading into the report, with an average analyst price target of $26.71 sitting just below the stock’s pre-earnings trading level, suggesting that at least part of Friday’s post-earnings rally reflects the market recalibrating its expectations upward following the stronger-than-anticipated results.

With Yelp’s core advertising business continuing to face headwinds even as its newer AI-driven products post triple-digit growth rates, investors are likely to keep a close watch on how quickly Yelp Host and its related services can scale toward the company’s stated $250 million run-rate target by 2028. The trajectory of that AI-focused growth engine, set against the ongoing softness in Yelp’s traditional local advertising business, is expected to remain the central storyline shaping investor sentiment toward the stock heading into the back half of 2026.

Stocks are spitting out a smaller share of their returns in dividend income, a challenge for those who lean on steady cash flows to cover daily expenses. The trailing 12-month dividend yield on the S&P 500 is now hovering around a generational low of just over 1%, after trending downward for much of the past two decades. Read more on the trend here.

A nationwide recall has been issued for dog and horse medication after glass fibers were found floating in injection vials.

American Regent Inc. announced that select lots of Adequan Canine Injection and Adequan i.m. Injection joint medication are affected by the recall.

The recall includes two lots of Adequan Canine Injection, which is used to treat joint dysfunction in dogs, and two lots of Adequan i.m. Injection, which is for treating joint dysfunction and lameness in horses.

SOME OLDER FORD VEHICLES POSE ‘UNREASONABLE’ SAFETY RISKS, REGULATORS WARN

American Regent, Inc. announced that select lots of Adequan Canine Injection and Adequan i.m. Injection joint medication are affected by the recall. (FDA)

Both products are clear and colorless to slightly yellow solutions administered by intramuscular injection.

The company said the glass fibers were found during routine testing.

American Regent Inc. said it has not received any reports of an injury related to the recall.

POPULAR WALMART NUT BUTTER RECALLED AFTER TESTING DETECTS SALMONELLA

Both products are clear and colorless to slightly yellow solutions administered by intramuscular injection. (FDA)

Consumers are urged to stop using the recalled product lots and to throw them away or return them to the manufacturer. Consumers should also contact a veterinarian if their pets have experienced any problems that may be linked to using the medication.

“The administration of an intramuscular injectable product containing particulate matter, such as glass fibers, may result in local irritation, swelling, inflammation, injection site pain, infection, or abscesses,” the company said in its recall notice.

American Regent, Inc. said it has not received any reports of an injury related to the recall. (Getty Images / Getty Images)

CLICK HERE TO GET FOX BUSINESS ON THE GO

Veterinary hospitals, distributors and retailers are also instructed to return any unused product to the manufacturer or discard the item.

“American Regent, Inc. is committed to the safety of patients who rely on its products and is taking this precautionary action to protect public health,” the company said.

Editor’s note: The original version of this story incorrectly stated that the recall was initiated after fiberglass was found in the vials.